Is CarShield worth the money? This question is about CarShield

No, CarShield is usually not worth the money since CarShield is a below-average vehicle service plan provider, based on customer reviews and Better Business Bureau ratings. You would need to have $1,200 to $1,600 in car repair costs covered per year just to break even, and CarShield has a lot of coverage exclusions. As a result, CarShield is not a great option for long-term coverage. However, if you are looking for a relatively low-cost way to cover mechanical repairs on your vehicle for a short period of time, CarShield could be worth considering. Why CarShield Could Be Worth It Low cost: plans start at $99/month Short-term commitment: plans can be purchased on a monthly basis and cancelled at any time Variety of plan options: 5 plans available, plus a plan for motorcycles and ATVs and a roadside assistance program CarShield vehicle service plans are pretty cheap, considering comparable extended warranties and vehicle service plans cost anywhere from $1,000 to $3,000 in total. Additionally, those extended warranties often require a long-term commitment. For example, Carchex only offers contracts ranging from 12 to 84 months. For long-term coverage, you may want to consider CarShield alternatives, like putting the money toward a savings account to use for repairs, or even purchasing mechanical breakdown insurance through your insurer. To learn more, check out CarShield’s profile and read WalletHub’s full CarShield review.

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Is CarShield worth the money?

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This question is about CarShield

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McKayla Girardin, Car Insurance Writer

@mckayla_girardin • 01/25/22 This answer was first published on 01/25/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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No, CarShield is usually not worth the money since CarShield is a below-average vehicle service plan provider, based on customer reviews and Better Business Bureau ratings. You would need to have $1,200 to $1,600 in car repair costs covered per year just to break even, and CarShield has a lot of coverage exclusions.

As a result, CarShield is not a great option for long-term coverage. However, if you are looking for a relatively low-cost way to cover mechanical repairs on your vehicle for a short period of time, CarShield could be worth considering.

Why CarShield Could Be Worth It

Low cost: plans start at $99/month
Short-term commitment: plans can be purchased on a monthly basis and cancelled at any time
Variety of plan options: 5 plans available, plus a plan for motorcycles and ATVs and a roadside assistance program

CarShield vehicle service plans are pretty cheap, considering comparable extended warranties and vehicle service plans cost anywhere from $1,000 to $3,000 in total. Additionally, those extended warranties often require a long-term commitment. For example, Carchex only offers contracts ranging from 12 to 84 months.

For long-term coverage, you may want to consider CarShield alternatives, like putting the money toward a savings account to use for repairs, or even purchasing mechanical breakdown insurance through your insurer.

To learn more, check out CarShield’s profile and read WalletHub’s full CarShield review.

Answer Question

Is CarShield a rip-off?

No, CarShield is not a scam or a rip-off, but it is a below-average company. CarShield is a legitimate company that has been providing vehicle service contracts for over 16 years and has earned a 4/5 rating from the consumer review on WalletHub, yet it has a history of complaints reported to the Better Business Bureau.... read full answer

Why CarShield Isn’t a Rip-Off

5 levels of protection plans, plus a motorcycle and ATV coverage plan and a roadside assistance program

Prices starting at $99 per month

Sample policies on their website so potential customers know what is included before they buy

Great reviews from customers on TrustPilot and WalletHub

Why CarShield May Be Right For You

CarShield offers vehicle service contracts – better known as extended warranties – that are designed to cover car repair costs stemming from mechanical issues. They offer several different plans, with prices starting at $99 per month. In contrast, many mechanical issues can cost thousands to repair. For example, transmission repairs can range from $300 to over $1,500.

Most other extended warranties require long-term commitments. For example, Carchex contracts range from 12 months to 84 months. So, if you are looking for short-term coverage, the monthly CarShield option may be right for you. Just make sure you understand everything that their plan does and does not cover before making a decision.

Alternatives to CarShield

Considering the numerous complaints against them through the BBB, you may find that a better option is putting the money you would have spent on an extended warranty into a savings account every month. Then, if you need to pay for a repair, you can use the money you have stored away.

Another alternative is to consider buying mechanical breakdown insurance (MBI) from a car insurance company. MBI covers the major systems in your car, from engines to air conditioning, and only costs about $100 a year. However, not all insurance companies offer MBI, so ask your insurer if it is available to you.

To learn more, check out WalletHub’s guide to extended warranties.

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Does CarShield really pay for repairs?

Yes, CarShield really pays for covered repairs to your vehicle, as long as you have an active CarShield vehicle service contract. The exact kinds of repairs CarShield will pay for depend on the specific service contract you choose.

Why Some People Wonder Whether CarShield Really Pays

CarShield has an F rating with the Better Business Bureau (BBB) for allegedly failing to pay claims and resolve complaints. In 2020, CarShield filed a ... read full answer petition against the BBB alleging bias against CarShield after the BBB shifted to an A-F grading system. CarShield claimed that the new system was designed to drive BBB website traffic and to encourage businesses to buy BBB memberships. CarShield does not pay for a BBB membership and alleges that the BBB enforces a moving standard, making a better grade impossible.

Why You Might Still Consider CarShield

The total number of BBB complaints filed against CarShield represent a relatively small portion of the 1 million contracts they claim to have sold. Whether or not there is a bias against CarShield, it is a well-known, affordable company with a 4/5 average user rating on WalletHub. Thus, you should just make sure to understand everything a CarShield plan does and does not cover before purchasing one.

For more information about CarShield and its competitors, check out WalletHub’s guide to the best extended car warranties.

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How much does CarShield cost?

CarShield costs $99 per month and up, though prices may vary by state, driver, and specific vehicle. CarShield sells vehicle service plans, which are similar to extended warranties and will cover the cost of repairs to the car’s systems and mechanical parts.

Key Things to Know About CarShield Plans

CarShield plans cover your vehicle’s engine, transmission, transfer case, drive axle, water pump.... read full answer

Six different plans are available from CarShield, giving drivers options in terms of coverage and cost.

To qualify for a CarShield plan, cars must fulfill certain eligibility requirements, though the company does not disclose the exact requirements. Eligibility can also vary by plan.

Specific details may vary based on which CarShield plan drivers purchase, but this list provides a good example of CarShield coverage.

CarShield vs. Extended Warranties From Major Insurers

Company	Cost
CarShield	$99 per month and up
Allstate	$25-$60 per month
AAA	$40-$80 per month
Liberty Mutual	$40-$150 per month

Although exact coverage may differ for the providers above, all of them cover the main parts or systems. These include the engine, transmission, brakes, suspension, and steering.

It’s also worth noting that mechanical breakdown insurance from a car insurance company is often a cheaper alternative to a third-party vehicle service plan or extended warranty. For more information, check out WalletHub’s guides to mechanical breakdown insurance and extended warranties.

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